The 6 Biggest Misconceptions About Meme Coins

Meme coins are an interesting concept sparking a lot of controversy. To an outsider, they look like a joke, a meme. However, there are a lot of people who made a serious profit both by trading them and by developing meme coins of their own.

People who don’t know much about crypto usually think that meme coins are a joke. They might even believe that they're destined to fail or that they're not worth paying attention to. However, this couldn’t be further from the truth. Some meme coins are actually quite successful and managed to generate a lot of profit for their investors.

So, what exactly are meme coins, and why are they so interesting? Keep reading to find out. 

What are meme coins?

Meme coins are a type of cryptocurrency that started as a joke or a meme on the internet. They're usually based on popular culture references, like Dogecoin, which is named after the Shiba Inu dog meme.

These coins are typically created quickly and without much planning, and they're often launched on decentralized exchanges (DEXs) with minimal fanfare. However, despite their humble beginnings, some meme coins have gone on to achieve great success, with market capitalizations in the billions of dollars.

6 biggest misconceptions about meme coins

People who don’t follow the crypto market closely might have some misconceptions about meme coins. Here are six of the biggest ones:

They lack value

People who claim that meme coins lack value usually observe them from the perspective of a dollar-value-average investment strategy. This means that they just compare the value difference in a single token instead of focusing on the percentage.

Imagine if you bought an X amount of BTC (let’s say $100) and it ended up increasing by 30%. This would yield you a return on investment of $30 and it would be a monumental growth, at the current state of the market.

At the same time, smaller, more volatile coins like meme coins can increase their value by thousands of percent. This means that this same amount of $100 could return far more.

They’re making promises that they can’t keep

The most interesting thing about meme coins is the fact that they're completely upfront about their downsides. In fact, there’s no coin out there that’s more willing to admit their volatility and the fact that they might not amount to anything.

Let's face it, the majority of the crypto world is described as vaporware by skeptics. The most honest thing about meme coins is that they wouldn’t even bother to try and beat these allegations.

So, why aren't they fighting against these allegations?

Because even if they were true, they wouldn’t change a thing.

Regardless of all the skepticism, some meme coins are doing really well. This means that there’s enough empirical proof that this asset can be successful. For every logical argument against its structural weaknesses and flaws, there’s a successful meme coin that you can point to, as well as a person who made a fortune on it.

You have to appreciate the honesty.

They lack utility

Meme coins may not have utility in a traditional sense, but this doesn't mean that they lack utility altogether.

For instance, they're pivotal when it comes to community building. Even in this day and age, humans are social beings, and belonging to a brand or being focused on the same type of coin could make a huge difference.

Another use for utility coins is one of raising awareness (especially in the field of crypto). A lot of people have no idea about the world of crypto or what it represents and this could serve as a fun introduction to the crypto world.

Lastly, they can be used as an educational tool. This is especially the case when you're trying to showcase how the crypto market (in general) works. In other words, this could benefit the world of crypto as a whole.

They’ll always perform worse than major cryptos

You can't just look at the value of the coin and use this as the determiner if they're doing well or not. The problem with this kind of outlook is that it doesn't really paint the whole picture. Sure, BTC is bigger than a meme coin like WIF (dogwifhat), however, there are fronts where WIF is outperforming it.

Still, we're saying some fronts since there are aspects in which BTC is clearly superior. For instance, even though WIF withstood the market dump better than BTC, bitcoin held its value better than its smaller counterpart.

Seeing as how the value of WIF is so low compared to BTC, a smaller shift in price will always be a larger percentual increase or decrease. This is something that you just have to get to terms with.

The key thing to remember is that volatility is just a state that the asset is in. It's neither good nor bad. Just ask people who bought BTC prior to 2017 and held, if it’s bad when the asset is volatile and see what they tell you.

The fact that they're uncapped is a huge problem

The biggest problem with meme coins is

News source：https://www.kdj.com/cryptocurrencies-news/articles/biggest-misconceptions-meme-coins.html

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